"A little known secret is that Wall Street really
wants the market to tank" !
Horror of horrors. Do you understand.
Why in God's name would they ever want that ?
"Because a significant drop in assets prices
would then cause the Federal Reserve to cut interest rates,
and start QE, and the easing of restrictive financial policy.
to push up assets prices.
Wall Street could then buy stocks cheaper than they have been in years,
and the boom cycle of stock appreciation could begin anew.
If you think about it, it makes perfect sense.
However, the kicker here is that the Fedis doing the exact opposite,right now,
restricting monetary policy thru QE, and the result is that asset prices are tanking !
This thesis is from one of "the "brightest financial minds out there,
Wolf Richter, who publishes "Wolf Street".com
THE_UNWIND
12/23/22
Woods Of Connecticut
wants the market to tank" !
Horror of horrors. Do you understand.
Why in God's name would they ever want that ?
"Because a significant drop in assets prices
would then cause the Federal Reserve to cut interest rates,
and start QE, and the easing of restrictive financial policy.
to push up assets prices.
Wall Street could then buy stocks cheaper than they have been in years,
and the boom cycle of stock appreciation could begin anew.
If you think about it, it makes perfect sense.
However, the kicker here is that the Fedis doing the exact opposite,right now,
restricting monetary policy thru QE, and the result is that asset prices are tanking !
This thesis is from one of "the "brightest financial minds out there,
Wolf Richter, who publishes "Wolf Street".com
THE_UNWIND
12/23/22
Woods Of Connecticut
The Fed is doing the exact opposite by "QT, quantitative tightening "